Indices surge on global cues, rally in bank stocks

Benchmark indices closed a per cent higher on positive global cues.

The Sensex​ rose 941 points or 1.3 per cent to close at 74,671, while the ​NSE Nifty​ ended 1 per cent higher to end at 22,643. Volatility index Nifty VIX rose 12 per cent to 12.24.

Nifty Bank made a record high, up 2.5 per cent, led by AU Small Finance Bank and ICICI Bank. Index heavyweights ICICI Bank, Axis Bank, IndusInd Bank, and HDFC Bank announced inline Q4 results, while small PSU banks have reported upbeat quarterly numbers. Financials and oil & gas shares also saw heavy buying.

• Also read: One-year return of Nifty’s PSU Bank Index outperforms Private Bank Index in FY24

Vinod Nair, Head of Research, Geojit Financial Services, said: “The Indian benchmark indexes rebounded, aided by upbeat US tech quarter earnings and a drop in US 10-year yield. Domestically, the Bank Nifty outperformed, driven by its strong performance in the fourth quarter. An ease in geopolitical tensions, coupled with stable earnings, is expected to maintain positive market sentiment.”

Asian stocks rally

Asian stocks rallied on Monday, led by Taiwan, Indonesia and South Korea. Crude oil futures fell amid a diplomatic push in West Asia to secure a cease-fire in Gaza. Corporate earnings optimism offset concerns about higher-for-longer interest rates ahead of the US Federal Reserve policy meeting outcome set for May 1.

Going forward, the Fed policy and the US non-farm payroll data will dictate market movement.

Nifty formed a long-bull candle on Monday negating the previous bearish pattern of dark cloud cover formed on Friday.

• Also read: Index Outlook: Sensex, Nifty 50: Short-term Outlook is Mixed

“The short-term uptrend of Nifty seems to have resumed after one day of weakness. The next upside levels to be watched are around 22800-22900. Immediate support is at 22500,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.